HomeMy WebLinkAboutMN-IURA-2013-10-24Approved: 12/19/13
108 East Green Street
Ithaca
Urban
Renewal
Agency
Ithaca, New York 14850
(607) 274-6559
(607) 274-6558 (fax) ax)
MINUTESMINUTES
ITHACA URBAN RENEWAL AGENCY
Common Council Chambers, City Hall
8:30 A.M., Thursday, October 24, 2013
Members: Svante Myrick, Eric Rosario, Karl Graham, Tracy Farrell, Chris Proulx (also serving as
Common Council Liaison)
Excused: None.
Staff: Nels Bohn, Sue Kittel, Charles Pyott
Guests: Dale Schumacher, The Learning Web of Tompkins County, Executive Director
Lee Dillon, Tompkins Community Action (“TCAction”), Executive Director
Public: None.
Others: None.
I. Call to Order
Chair Myrick called the meeting to order at 8:36 A.M.
II. Agenda Additions/Deletions
Kittel indicated the IURA would also need to discuss the development of the 2014 Action Plan.
No objections were raised.
III. Public Comment
None.
IV. Review of Draft Meeting Minutes: September 5, 2013
Farrell moved, seconded by Myrick, to approve the September 5, 2013 meeting minutes, with
one minor modification.
Carried Unanimously 5‐0
V. Governance Committee (GC) Report
A. Proposed 2014 IURA Budget Resolution
Bohn noted health insurance rates actually decreased by 15% in the 2014 administrative budget. The
only major budget increase was is one‐time anticipated expenditure for information technology
hardware/software.
IURA Minutes
October24, 2013
Page 2 of 14
Farrell moved, seconded by Graham:
FY 2014 IURA Administrative Budget
WHEREAS, the IURA desires to annually adopt an administrative budget to guide expenditures and
manage financial resources of the IURA, and
WHEREAS, New York State law governing public authorities requires submission of the adopted
budget 60 days prior to the start of the next fiscal year, and
WHEREAS, the IURA budget is due to be submitted to the New York State Authorities Budget Office
by November 1st of each year, and
WHEREAS, at their October 18, 2013 meeting the IURA Governance Committee reviewed this
matter and recommended the following action; now, therefore, be it
RESOLVED, that the IURA hereby adopts the FY 2014 IURA Administrative Budget, dated 10/15/13,
as herein attached, and be it further
RESOLVED, that effective with the first payroll check date following January 1, 2014, any
modifications to IURA employee salaries, benefits, and contributions shall be adjusted as contained
in the adopted 2014 IURA budget.
Carried Unanimously 5‐0
IURA Minutes
October24, 2013
Page 3 of 14
B. City FY 2012 Financial Audit Schedule Report
Bohn indicated the auditors have begun working on the Financial Audit early in the calendar year for a
goal of completion by 9/30/13. While work on the audit has advanced, it has now been eclipsed by
budget preparation work in the City Controller’s office. The revised goal for completion is now 12/31/13,
which would be 3 months behind the HUD deadline for completion though 4 months earlier than last
year.
C. Review of IURA Financials: September 2013
Bohn noted 2014 HUD‐funded projects are now included in the financials report, although there are no
spend‐down figures associated with them. In terms of 2012 CDBG activities, Bohn noted the IURA’s
Ithaca FoodWorks Kitchen Development project funding commitment has now expired. The project
sponsors were required to demonstrate project feasibility, which they were unable to accomplish after
their Appalachian Regional Commission grant request was not approved, though it scored well.
Diane’s Downtown Auto is now fully current on loan repayments. Bohn is working with the Argos Inn to
get it back on track ― the inn currently only has significant occupancy on the weekends and most of its
business is generated word‐of‐mouth. It did finally close on its historic preservation tax credits; however,
it is only able to access a portion of the funds, until it can submit a full financial accounting of the project,
planned for next month.
D. Committee Chairperson Report
None.
VI. Neighborhood Investment Committee (NIC) Report
A. 2013 HUD Entitlement ― Program Amendment to Fund The Learning Web’s Supported
Employment Program (Project #22, CDBG 2013)
Farrell reported that the Learning Web approached NIC to explore funding for a supported
employment program, since the IURA has funds remaining from last year. The Learning Web
worked hard to construct a program with the Cayuga Medical Center (CMC) and Workforce NY to
hire a coach to work with up to 7 unemployed young adults with either a high school diploma or
GED. The jobs would be carefully matched up to the participants’ interests. It seems like a
wonderful program.
Kittel added that the jobs would be unsubsidized and funded by CMC in the form of a pilot program.
Myrick noted it sounds like a great opportunity. It also seems to follow the model of the IURA’s
successful hospitality and commercial driver’s licence (CDL) programs. CMC also has good track
record of moving people up the career ladder. CMC would pay participants’ salaries, while the IURA
would pay for bus passes, overhead expenses, supplies, etc..
Proulx observed it would be outside IURA’s normal funding cycle. Kittel replied that does happen
periodically, although it would require Common Council approval and public input.
IURA Minutes
October24, 2013
Page 4 of 14
Farrell moved, seconded by Graham:
Project Funding for The Learning Web’s Supported
Employment Program (New 2013 Project #22)
WHEREAS, The Learning Web has requested funding for a supported employment program, and
WHEREAS, if funded, the Program will use CDBG funds to employ a program coordinator who will
support young people with limited employment experience in jobs at Cayuga Medical Center, and
elsewhere, in order to increase their chances of successfully maintaining permanent, unsubsidized
employment, and
WHEREAS, the 2013 Action Plan identifies unallocated CDBG funds in the amount of $96,458.00,
and
Whereas, the Learning Web has requested $52,776, and
WHEREAS, this project is classified as an eligible public service activity consistent with the goals of
the City’s Consolidated Plan by providing job placement for under‐employed and un‐employed
young people who have limited job skills or successful past work experience, and
WHEREAS, this project can be fully funded at the level requested without exceeding the 15% public
services spending cap, and
WHEREAS, the Neighborhood Investment Committee reviewed this proposal at their meeting on
September 13, 2013 and recommended the following, now, therefore be it
RESOLVED, that CDBG funds in the amount of $52,776.00 be awarded to The Learning Web for the
Supported Employment Program as 2013 Project #22, and be it further
RESOLVED, that these funds be derived from the 2013 HUD Entitlement Grant, and be it further
RESOLVED, that the IURA has determined that this action does constitute a Substantial Program
Amendment under the adopted Citizen Participation Plan of the City of Ithaca, requiring a public
hearing and approval of Common Council, and be it further
RESOLVED, that the IURA Chairperson, upon advice of the IURA Attorney, is hereby authorized to
execute all necessary and appropriate documents to implement this resolution once Common
Council approval has been received.
Carried Unanimously 5‐0
Schumacher thanked the IURA for its support. He is very excited about the program. The Learning
Web has been holding discussions with CMC for over a year, trying to launch it. He noted the
Learning Web will also explore other industries for similar opportunities.
IURA Minutes
October24, 2013
Page 5 of 14
B. Disposition of 215‐221 W. Spencer St. (Tax Parcel #93.‐7‐5.1) ― Authorization of Chairperson to
Accept Purchase Offer (with Executive Session to discuss proposed sale of real property when
publicity would substantially affect the value thereof)
― EXECUTIVE SESSION ―
Farrell moved, seconded by Myrick, to open the Executive Session at 8:49 p.m.
Carried Unanimously 5‐0
During the Executive Session, action was taken to define the parameters for accepting the purchase
offer for the property. (It was also noted that the street numbering system for the property has
changed. It was determined it should be 215‐221 W. Spencer Street.)
― Executive Session concluded at 8:54 a.m. ―
Myrick reported that no action was taken in executive session.
C. Housing Fund, Round #7 ― Authorize $75,000 Disbursement Pursuant to Executed MOU to
Provide Predevelopment Loan Assistance to TCAction, Inc. for Amici House Project
Farrell noted the project was recommended for funding by the Cornell/City/County Housing Fund
Program Oversight Committee (POC). Providing 12‐15 units of supportive housing for young homeless
people without children, it would include HeadStart programming, a commercial kitchen, and training
space. Located near TCAction’s current office, it would also be close to sidewalks, public
transportation, and work opportunities. The budget mostly contains funding for geotechnical analysis,
zoning plan reviews, site surveys, etc.
Farrell indicated that, since NIC had previously seen no information about the project, a number of
questions arose at the meeting. For example, the $75,000 of IURA funding for the feasibility studies
seemed a lot of money. NIC members also wondered about the benefit of clustering program
recipients together and whether any requirements would be associated with the project (e.g., work or
school requirements), as well questions about unit sizes and the project’s overall feasibility.
Responding to Farrell’s questions, Dillon indicated the feasibility study would in fact cost $75,000 and
noted that the project would probably include a couple of two‐bedroom units. The project has been in
development for appr. 10 years and has been a priority for the Human Services Coalition’s Continuum
of Care Committee. Dillon remarked that TCAction belongs to the Supportive Housing Network of New
York, which provides technical assistance and best practices. (TCAction has used it for every project it
has been involved in). This would be TCAction’s fourth such project. It would begin by hiring Tom
Schickel (Schickel Architecture) to create the pre‐development budget. TCAction also worked with
Schickel for a project in Groton, which worked well.
TCAction currently own the property, so it has site control. It is also a grantee of the Early HeadStart
program. Program participants would be required to be working, going to school, or performing
community service. TCAction has data on the kinds of Tompkins County youth they would be serving.
IURA Minutes
October24, 2013
Page 6 of 14
Dillon noted that TCAction has seen a significant increase in foster child placement and its goal would
be to place every child in foster care in the Early HeadStart program. TCAction would target 16‐21
year‐olds and would have 24‐7 on‐site coverage.
Dillon noted she was aware of Schumacher’s concerns with clustering older youth; however, with this
particular younger group, that may be the best model. In its feasibility analysis, TCAction would
examine all those kinds of issues. Some aspects of the program remain to be determined (e.g., soil
quality). Dillon indicated that the young adults TCAction would be serving do not generally employ
homeless shelters (in some cases, they would not even be eligible); so it plans on having some safe
haven beds on the site, to take advantage of the 24‐7 coverage. The program would probably be
limited to transitional housing. The project would employ HUD Section 8 vouchers and if a tenant has
been with the project for at least a year, in good standing, they could take the voucher with them.
TCAction would work with various community partners on the program: Tompkins County Department
of Social Services, Cayuga Addiction Recovery Services (CARS), Alcohol Drug Council, the City of Ithaca,
Tompkins County, Youth Services, Child Development Council, and local judges.
Farrell asked how other TCAction programs are structured. Dillon replied they have been 24‐7
programs, with younger tenants, the same kinds of rules, curfews, and on‐site staff. Some of them
have rooms with a shared kitchen, while one had studios.
Farrell asked about the transitional housing time limit. Dillon replied it is generally 24 months.
TCAction would not like it any shorter than that, but that remains to be determined.
Dillon indicated the shared kitchen would be for the HeadStart program, but would also serve to train
people for placement in the culinary/hospitality industry.
Proulx noted the project was discussed by the POC. It would target low‐income individuals at a young
age level, which is good. The two principal areas of concern were locating a higher density project so
close to that road and the comparitive lack of public transit in that location. Overall, however, it seems
like a good program and the POC recommended it for approval.
Farrell moved, seconded by Graham:
Housing Fund, Funding Round #7 – Authorize Disbursement of $75,000
Pursuant to Executed MOU
WHEREAS, pursuant to an executed MOU, the Program Oversight Committee for the
Cornell/City/County Housing Fund recommends that the City of Ithaca approve funding assistance
for the following affordable housing project:
$75,000 Amici House project, predevelopment loan to conduct feasibility analysis
for a 12‐15 unit supportive rental housing project for homeless young
persons including an on‐site child care center/Early Head Start classroom
at 661‐665 Spencer Rd., Tompkins Community Action, and
IURA Minutes
October24, 2013
Page 7 of 14
WHEREAS, the Housing Fund Program Oversight Committee (POC) met on June 19, 2013, to review
recommendations from the Application Review Committee of round #7 funding applications for new
affordable housing projects, and
WHEREAS, the City of Ithaca is represented on the POC by Alderperson J.R. Clairborne, Alderperson
Chris Proulx, Doug Dylla, past member of the Ithaca Urban Renewal Agency (IURA) and alternate
member Eric Rosario, IURA member, and
WHEREAS, the Housing Fund was established in 2009 by Memorandum of Agreement (MOU) as a
six‐year program between and among the City of Ithaca, Tompkins County and Cornell University to
raise and award funds to increase the supply of permanently affordable housing in the County, and
WHEREAS, the Common Council determined that City contributions to the Housing Fund should be
used to assist projects located within the City of Ithaca, and
WHEREAS, City funds committed to the Housing Fund are derived from Gateway Loan proceeds that
originated from sale of City‐owned land for the Eddygate project, and are held by the IURA, and
WHEREAS, a total of up to $500,000 from the Housing Fund is available to award in round #7 as
follows:
Funding Sources ($1,000s)
Cornell Tompkins City of
Funding Awards University County Ithaca Total
Annual Funds Pledged 200 100 100 400
Round #1 (2009) 145 100 30 275
Round #2 (2010) 75 70 70 215
Round #3 (2011) 100 100 0 200
Round #4 (2011) 0 0 30 30
Round #5 (2012) 0 0 0 0
Round #6 (2012) 420 130 230 780
Totals Awards to Date 740 400 360 1,500
Funds Available for Round #7 (2013) 260 100 140 500
and,
WHEREAS, the POC recommends round #7 funding of $375,000 for three affordable housing
projects, and
IURA Minutes
October24, 2013
Page 8 of 14
Round #7, Housing Fund ‐ Recommended Funding Awards
Funding ($1,000s) Applicant Project # Afford.
Units Location Cornell County City Total
Ithaca
Neighborhood
Housing Services
Scattered Site
New
Construction
7 owner‐
occupied
(C)Ithaca
‐402 S. Cayuga
‐214 Second St.
‐203 Third St.
210 0 0 210
Tomkins County
Action Amici House 12‐15
rental
(C)Ithaca
‐661 & 665
Spencer Rd
0 0 75 75
Peterson/ Seven
Circles LLC
White Hawk
Ecovillage
3 owner‐
occupied
(T)Danby
‐Rt. 96B/
Gunderman Rd
0 90 0 90
Totals 22‐25 210 90 75 375
WHEREAS, providing funding to conduct feasibility analysis for a proposed housing project is a type
II action under SEQR/CEQRO provided the funding does not commit the agency to commence,
engage in or approve the housing project, therefore no environmental review is required for this
action, and
WHEREAS, the Neighborhood Investment Committee (NIC) reviewed this matter at their October
11, 2013 meeting and raised a concern that the proposed predevelopment budget for the Amici
House project focused solely on site, constructability and zoning feasibility issues and did not
include funding for analyzing operational or programmatic feasibility, and
WHEREAS, the NIC recommended that staff invite the project sponsor to attend the IURA meeting
to address the issue and forwarded the matter to the IURA without recommendation, and
WHEREAS, TCAction Executive Director, Lee Dillon provided additional project information on
October 24, 2013 and satisfactorily addressed concerns about the predevelopment project budget;
now, therefore, be it
RESOLVED, that subject to Common Council approval, the IURA hereby authorizes an expenditure of
up to $75,000 for the Amici House project to conduct feasibility analysis, and be if further
RESOLVED, that such funds shall be derived from Gateway Loan Proceeds, and be it further,
RESOLVED, that the IURA Chairperson, subject to advice of IURA legal counsel, is authorized to
execute a Fiscal Agency Agreement pursuant to the Housing Fund MOU with Tompkins County to
implement this resolution.
Carried Unanimously 5‐0
D. Committee Chairperson Report
Farrell reported that the Committee discussed the bond investment issue and recommended bond
funds be specifically targeted to affordable housing, with the intent of incorporating it into the regular
CDBG funding cycle.
IURA Minutes
October24, 2013
Page 9 of 14
Farrell observed that the total bond issue will not represent as much money as the Committee initially
believed. The Committee would also like to ensure all proposals include detailed budgets (previous
proposals were evaluated through a complicated formula). Until Bond Counsel approves the
modification, there is no reason to take any further steps. Bohn will be collaborating with Bond
Counsel to obtain approval. Bohn added that another modification would allow homebuyers with
income up of to 100% of area median income to be eligible. Farrell confirmed the Committee agreed
to that modification.
Farrell noted the Committee also met for the first time with Habitat for Humanity, which has been
constructing 4 new houses a year outside Ithaca. Habitat for Humanity would now like to construct
some homes in the city. It is also launching a home rehabilitation program, which could be
implemented in the city, as well. The Committee agreed that, if the IURA has any available for‐sale
property, it would inform Habitat for Humanity. The Committee also encouraged Habitat for Humanity
to talk with Ithaca Neighborhood Housing Services (INHS) to explore opportunities for collaboration.
Farrell concluded her report by noting the 701 Cliff Street house is now ready for demolition. Kittel
added the demolition would be placed up for bid this week and she anticipates it could be completed
within 6 weeks. IURA staff has also consulted with a realtor about listing the property.
VII. Economic Development Committee (EDC) Report
A. Cherry Street Industrial Park
1. Approve Request from Jonathan Gould to Authorize Early Exercise of Option to Acquire
Property Located at 245 Cherry Street (Tax Parcel #96.‐2‐1.21)
Proulx noted the applicant Jonathan Gould originally had his business located on Cherry Street, but
relocated to Lansing several years ago. He is now proposing returning the business to the original site,
bringing jobs back, and expanding the building to possibly allow for more jobs. There was a lengthy
discussion at the Committee meeting regarding the sale price. IURA typically incorporates any lease
payments it would have received in the sale price of such applications; however, Gould requested
additional flexibility in the sale price and a $14,225 price was ultimately agreed to. Gould is prepared
to pay that amount to the IURA, as soon the request is authorized.
Proulx moved, seconded by Farrell:
Cherry Street Industrial Park – Modify Lease with Jonathan Gould to Authorize Early Exercise of His
Option to Acquire Tax Parcel #96.‐2‐1.21 (245 Cherry Street)
WHEREAS, the Ithaca Urban Renewal Agency (IURA) leases an approximately ½ acre parcel in the
Cherry Street Industrial Park located at 245 Cherry Street (tax parcel #96.‐2‐1.21) to Jonathan Gould
(Gould), and
WHEREAS, the 23‐year lease extends from November 8, 1995 until November 8, 2018 at an annual rent
of $1,140 with an option for the lessee to acquire the property at the end of the lease for $12,014.65,
and
IURA Minutes
October24, 2013
Page 10 of 14
WHEREAS, on September 3, 2013, Gould requested authorization for early exercise of the option to
purchase the premises for a lump sum payment of $12,000 to implement a plan to expand the building
by $1,375 square feet, relocated PSP Unlimited, and its 14 employees, back to 245 Cherry Street, and
WHEREAS, on October 7, 2013, Gould requested that the IURA consent to grant a mortgage to
Tompkins Trust Company on Gould’s leasehold interest in the premises to secure a loan in the amount
of $220,000 in the event the buy‐out price is not financially feasible, and
WHEREAS, the 3,692 square foot building on the premises has remained vacant since PSP Unlimited
moved to Craft Road in the Village of Lansing, and
WHEREAS, the IURA seeks to maximize investment and employment activity in the Cherry Street
Industrial Park, and
WHEREAS, past IURA actions to allow early exercise of the purchase option have calculated the pay off
amount based on the net present value of the future lease payments to be foregone plus the future
lump sum payment, and
WHEREAS, considering the $12,014.65 option price and the net present value of future rent due, the
Economic Development Committee recommends setting the final purchase price at $14,225.00, and
WHEREAS, on October 8, 2013, the Economic Development Committee reviewed this matter and
recommended the following; now, therefore be it
RESOLVED, that the IURA hereby approves the request from Jonathan Gould to modify the lease
agreement for tax parcel #96.‐2‐1.21 (245 Cherry Street) to allow early exercise of the purchase option
at a final price of $14,225.00, and be it further
RESOLVED, that should Jonathan Gould elect not to exercise early purchase of the property at the
above payoff price, the IURA hereby consents to Jonathan Gould granting a mortgage to Tompkins
Trust Company in an amount up to $220,000 on his leasehold interest in the 245 Cherry Street lease
premises, and be it further
RESOLVED, that the IURA Chairperson, upon the advice of IURA legal counsel, is hereby authorized to
execute all necessary and appropriate documents to implement this resolution, and be it further
RESOLVED, Lessee shall be responsible to pay actual IURA legal fees associated with the lease
modification or consent to grant a mortgage on IURA premises.
Carried Unanimously 5‐0
2. Authorize Real Estate Brokerage Agreement to Market 6‐Acre Parcel at End of Cherry Street
(Tax Parcel #100.‐2‐1.21)
Proulx noted that Common Council authorized the IURA to market the parcel last year, which the IURA
did (as a Request for Expressions of Interest); but, unfortunately, the effort was unsuccessful.
IURA Minutes
October24, 2013
Page 11 of 14
IURA staff and the Committee now recommend placing the parcel on the open market through a
commercial real estate broker to see what results that may produce.
Bohn explained that any received proposals would be reviewed by both the IURA and Common Council
Farrell asked what the implications would be for a proposed residential use of the parcel. Proulx
replied that, while a residential use was not categorically prohibited, the developer would need to
obtain a Zoning Variance for that use. He added there has been considerable discussion about the
possibility of either changing the zoning in that area or creating two “Industrial” zones, one of which
would allow housing; however, nothing well‐defined has yet been proposed.
Bohn added that the IURA was guided by legal counsel not to encourage a non‐conforming use on that
parcel, although that does not preclude its consideration of such a proposal.
Proulx moved, seconded by Farrell:
Authorize Real Estate Brokerage Agreement to Market 6‐Acre Site
at Southerly End of Cherry Street (Tax Parcel # 100.‐2‐1.21)
WHEREAS, on June 6, 2012, the City of Ithaca Common Council (City) authorized the transfer of an
approximately 6 acre portion of a 8.25 acre parcel located at the southerly end of Cherry Street to
the Ithaca Urban Renewal Agency (IURA) to issue a Request For Proposal (RFP) for sale of the
property to a purchaser committing to undertake an economic development project, and
WHEREAS, on April 19, 2013, the City and IURA executed a purchase and sales agreement whereby
the IURA agreed to solicit competitive proposals for purchase and development of the in
compliance with the following guidelines:
Sales price: seek fair market value
Use: economic development project
Taxable status: taxable, and
WHEREAS, on June 19, 2013, the IURA accepted conveyance of a 6‐acre parcel (tax parcel #100.‐2‐
1.21) from the City of Ithaca, and
WHEREAS, the IURA Economic Development Committee raised a concern that an RFP for light
industrial use of the entire 6‐acre parcel may receive no responses and recommended that a
Request For Expression of Interest (RFEI) be issued to gain a better sense of market demand for this
industrial zoned land, and
WHEREAS, on June 27, 2013, the IURA approved an RFEI document including the following primary
selection criteria to review proposals:
• Economic benefits of the project;
• Community benefits of the project, including compatibility with the surrounding community;
IURA Minutes
October24, 2013
Page 12 of 14
• Respondent’s financial & technical capacity to establish a financially feasible and
economically viable project; and
• Willingness to pay fair market value to purchase the Site, and
WHEREAS, on July 26, 2013, an RFEI was issued with notices sent to all property owners in the
vicinity of the site, local manufacturers, commercial real estate brokers and half‐page
advertisements placed in the Real Estate Journal supplement of the Ithaca Journal newspaper for
four consecutive weeks, and
WHEREAS, no responses to the RFEI were received by the deadline of September 27, 2013, and
WHEREAS, the IURA Economic Development Committee discussed this matter at their October 8,
2013 meeting and recommend listing the property with a commercial real estate broker as an
alternative method to solicit competitive proposals to purchase and develop the property for an
economic development project(s); now, therefore, be it
RESOLVED, that the IURA hereby authorizes the IURA Chairperson, subject to advice of the IURA
Economic Development Committee and IURA legal counsel, to execute an exclusive right to sell
contract with a real estate broker to market the six‐acre site at the southerly end of Cherry Street
(tax parcel #100.‐2‐1.21), and be it further
RESOLVED, that any purchase offer shall be subject to approval by the IURA and Common Council
endorsement following a public hearing, and be it further
RESOLVED, that selection criteria contained in the RFEI shall be used by the IURA to evaluate
purchase offers, and be it further
RESOLVED, that staff is directed to seek competitive proposals from commercial real estate brokers
to list the property.
Carried Unanimously 5‐0
B. Community Lending ― Authorize Technical Assistance to Neighborhood Pride, LLC
Proulx explained that Neighborhood Pride received a $100,000 IURA loan, which it has not been
current on for two months. It has encountered significant challenges maintaining a minimum level of
sales; so IURA staff has been trying to identify potential consultants to provide technical assistance to
improve the store’s profitability. EDC reviewed two potential consultants: one with a strong financial
background, but lacking retail/grocery experience; and another with retail/grocery and marketing
experience. The key issue is what Neighborhood Pride’s biggest challenge is right now. At its last
meeting, EDC leaned towards selecting the more marketing‐oriented person.
Bohn added that the IURA would also impose a condition on Neighborhood Pride for it to hire someone
for technical assistance, once the IURA‐funded technical assistance effort is completed.
IURA Minutes
October24, 2013
Page 13 of 14
Farrell asked where Neighborhood Pride would find the funds to hire its own technical assistance
provider. Bohn replied it would most likely require some kind of infusion of money or capital for
Neighborhood Pride.
Proulx indicated that EDC reluctantly supported the proposal. Most Committee members believe the
situation has likely gone beyond a point at which it could be remedied; however, the technical
assistance may provide the store with a valuable opportunity to improve its position.
― EXECUTIVE SESSION ―
Farrell moved, seconded by Graham, to open the Executive Session at 9:36 a.m.
Carried Unanimously 5‐0
No action was taken during the Executive Session.
― Executive Session concluded at 9:48 a.m. ―
Proulx moved, seconded by Myrick:
CD‐RLF – Technical Assistance to Neighborhood Pride, LLC (CD‐RLF #32)
WHEREAS, on February 6, 2013, the IURA issued a $100,000 loan from the Community Development
Revolving Loan Fund (CD‐RLF) to Neighborhood Pride LLC (NP) and First & Adams, Inc. as part of a
$2.3 million project to open the Neighborhood Pride grocery store located at 210‐212 Hancock
Street, and
WHEREAS, loan approval was contingent upon receipt of intensive technical assistance services
available to Neighborhood Pride by Associated Wholesalers Inc. (AWI) as a new member of the AWI
cooperative, including on‐site grocery management support services for an average of at least 2
days/week for approximately 3 months, and
WHEREAS, Neighborhood Pride opened for business on February 20, 2013, and
WHEREAS, operating results have not matched financial projections for the grocery store, and
WHEREAS, NP management seeks assistance to improve profitability of the grocery store, and
WHEREAS, IURA staff has reviewed candidate technical assistance consultants with NP
management, and
WHEREAS, Jeannine Sacco has submitted a proposed scope of services that includes a department‐
by‐department evaluation of the grocery store and identification of critical next step actions, and
IURA Minutes
October24, 2013
Page 14 of 14
WHEREAS, the IURA Economic Development Committee discussed this matter at their August 27,
2013 and October 8, 2013 meetings and recommend the following; now, therefore, be it
RESOLVED, that the IURA hereby authorizes execution of an independent consultant agreement
with Jeannine Sacco, in an amount not to exceed $1,500, to provide technical assistance to
Neighborhood Pride LLC, contingent upon the following:
1. Neighborhood Pride LLC agrees to address critical next step actions identified by the
independent consultant, and
2. Neighborhood Pride LLC agrees to match IURA technical assistance by contracting for at least
10 hours of additional technical assistance services with a consultant of their choice to follow up
on initial technical assistance findings and recommendations, and be it further
RESOLVED, that the IURA Chairperson, upon the advise of IURA legal counsel, is hereby authorized
to execute all necessary and appropriate documents to implement this resolution, and be it further
RESOLVED, that funding shall derive from the CD‐RLF.
Carried Unanimously 5‐0
VIII. Other New/Old Business
A. IURA Chairperson Report
(Not discussed due to time considerations.)
B. Common Council Liaison Report
(Not discussed due to time considerations.)
C. Staff Report
(Not discussed due to time considerations.)
D. Next Meeting Date: December 19, 2013
X. Adjournment
The meeting was adjourned by consensus at 9:51 A.M.
Minutes prepared by C. Pyott, edited by N. Bohn.